In response to our previous e-alert of 30 March 2012, we wish to
clarify that a 'two-pronged' approach has been taken to the
amendments of the Land Sales Act 1984 (LSA).
The first round of amendments that took effect on 15 February
2012 amended section 27(1)(b) of the LSA, and restricted a
Buyer's right to avoid the contract for an off-the-plan
residential sale in certain circumstances. In particular, if the
developer has not provided a registrable transfer to the Buyer
within the relevant time period (currently 3 and a half years),
then the Buyer may be able to avoid the contract. However, the
amendments now provide that the contract cannot be avoided by the
Buyer where the delay in providing the registrable transfer is a
result of the Buyer's default.
The benefit of this amendment for developers is that it prevents
Buyers from bringing an action against them where delays in
providing the registrable transfer are a result of the Buyer's
The second round of proposed amendments to the LSA will allow
developers to state a sunset date for providing the registrable
transfer of up to five and half years in the contract of sale, as
compared to the current sunset date of three and a half years.
Developers are currently required to make an application to extend
this sunset date, up to a maximum of five and a half years. The
proposed amendments alleviate the need for developers to make an
application to extend the time period, thereby reducing
administrative processes, costs and to some extent uncertainty.
This second round of amendments has not taken effect, but we are
continuing to monitor the position, so watch this space for further
information as it comes to hand.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Many retail leases include a covenant to trade, requiring the tenant to open the premises for trade during certain hours.
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